List of top Economics Questions asked in CBSE Class Twelve Board Exam

Identify the correct equation from the following:

Read the following statements carefully: Statement 1: If in an economy the level of income increases (\( \Delta Y \)), it will always proportionately increase the level of consumption (\( \Delta C \)).
Statement 2: Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are always equal to each other.

Suppose, the Balance of Trade of an imaginary economy shows a favourable balance of Rs. 500 crore. The values of merchandise exports are Rs. 1200 crore and transfer payments are Rs. 400 crore.
The value of merchandise imports would be ______ .
(Choose the correct alternative to fill in the blank)

Suppose for a hypothetical economy:
\(C = 100 + 0.75Y\) (where \(C =\) Consumption and \(Y =\) Income)
\(I_0 = 400\) (\(I_0 =\) Autonomous Investment)
Value of Investment Multiplier (\(K\)) would be _________ .
(Choose the correct alternative to fill in the blank)

Surplus in Balance of Payments (BOP) refers to the excess of ______ .
(Choose the correct alternative to fill in the blank)

\[ \begin{array}{|c|c|c|c|} \hline \textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\ \hline I & 5000 & 4000 & \ldots(i)\ldots \\ \hline II & 4000 & \ldots(ii)\ldots & 800 \\ \hline \ldots & \ldots & \ldots & \ldots \\ \hline Total & \ldots(iii)\ldots & \ldots(iv)\ldots & 5000 \\ \hline \end{array} \]

Total consumption expenditure by households under Keynesian Economics is a combination of ________ and _____ .
(Choose the correct alternative to fill in the blanks)

Identify the incorrect feature(s) of money supply (\(M_1\)) from the following:
[(i)] It is measured at a point of time.
[(ii)] It does not include stock of money held by the government.
[(iii)] It is always the currency in the hands of the Central Bank of a nation.

“The participation rate of people in economic activities in rural areas is more than that in urban areas.” Justify the given statement.

“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.

Discuss any two liberalization measures pertaining to the tax reforms, introduced by the government, during the economic reform process of 1991.

___ farming is a system that is helpful in restoring, maintaining, and enhancing the ecological balance.
(Choose the correct alternative to fill in the blank):

Explain the ‘redistribution of income’ objective of the Government Budget.

Differentiate between public provision and public production.

Define externalities.

“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.”
Justify the given statement with a valid explanation.

“Depreciation of currency may promote exports of a nation.”
Defend or refute the given statement with valid arguments.

"If actual demand for final goods falls short of the actual output of final goods corresponding to full employment level, it may lead to an unintended accumulation of inventories."
Do you agree with the given statement? Give valid reasons in support of your answer.

Identify which of the following is not one of the merits of a fixed exchange rate system: In the light of the given statements, choose the correct alternative from the following:

Discuss the impacts of Special Economic Zones (SEZs) on the economic growth of China.